Nowadays, credit cards, bankcards and charge cards have been widely used in various transactions such as paying for purchase of commodities or services, or transferring funds between accounts associated with the cards. The transactions can be conducted through use of an automated teller machine (ATM) or a point of sale (POS) machine having access to a bank network or other transaction networks. However, in places where no ATM or POS machines are deployed or in cases when people do not carry their cards, such transaction cannot be easily conducted.
With the rapid popularization of smart phones and other wireless communication devices, mobile payment becomes an effective method to settle the absence of ATM or POS machines. For example, a portable card reader capable of reading account information from the credit cards may be coupled to the smart phone to provide the account information thereto. The smart phone then processes the account information and communicates such information with the external transaction network to act as the POS device. However, for such mobile payment, it is required for one party of the transaction to verify his or her personal identifying information (PIN) on the device of the other party involved in the transaction, which significantly increases the risk of credit card fraud.
Therefore, there is a need for an approach for processing transactions easily and safely.